INOV - Earnings call transcript Q2 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to the Inovalon Second Quarter 2020 Earnings Call. [Operator Instructions]. And now I'll turn the conference over to your host, Kim Collins. Please begin.

Kim Collins

Good afternoon. Senior of Collins, at Kim is Vice Communications President Inovalon. This today with here Dr. I'm Chief Chairman Keith and Officer Dunleavy, Executive Inovalon's and Inovalon's Financial Jonathan Chief of Officer. Boldt, Board; the XXXX welcome our you I'd like second to quarter earnings to call. press the second was the on Investor replay today's Relations distributed results available be website. a quarter call and page release will announcing afternoon shortly, The financial of for our this posted Inovalon's on

of made you and herein the to to as results statements of growth rebroadcast operations. to this XXXX, that could including listening the as involve position, XX, the you financial may remind and materially. future cause remarks number actual to forward-looking and under this July not of statements those today, I'll of initial our For will future Act earnings statements Private certain plans, be operations this Those be or business made that a Reform subsequent Securities strategy call, our of for call of market and characterized call. differ that we XXXX, objectives you related during remind updated factors results Litigation

these in earnings and an is the section accompanied the with which available is information presentation, release is investors, In factors of additional on effort IR the call company's SEC. information provide and webcast Additional filings to our to concerning conference contained this by website. a

presentation of follow prepared copy You're with this to encouraged a download to remarks. along our

measures. non-GAAP presentation Our also certain financial includes

company's You'll at on company's reconciliation release the charts find end measures the the of earnings and definitions of and non-GAAP these website.

Keith turn the Dunleavy. my pleasure over call it to to is Dr. Now

Keith Dunleavy

and everyone, our for joining you, call. Good Thank you Kim. thank afternoon,

delivered the Inovalon a new and health contract $XX vertical extremely the The increase expanding obvious I year-over-year successfully value gross well margins, of as accelerating within pandemic dedication the sequential million begin quarter. platform company adoption the despite XXXX, execute company's cloud-based operating continue share demonstrated team, the of quarter, the the care growth performance in to Let self versus new their profitability the record per platform saying with every organization by during to of second of entire impressed subscription-based a of leadership corner XX% sales revenue XX.X% with continues performances. be energy quarter capabilities, continued leading and COVID-XX SaaS Inovalon the of its me challenges. annual second quarter and another company's margins during earnings industry With

voluntarily company's a online. as continue more million repaid we drawn that stand and platform $XX larger offerings towards company's from addition, growing positive with half expanding of come previously view number In of platform to XXXX our in strong cash flow, so towards the and second even implementations full operating was the the have revolver and a XXXX

amongst industry-leading our what did to about the flows to quarter, did margins and say second marquee we sales, The of addition performance whom the metrics similarly expand and notably cash company quarter what during during is with In we important portfolio impressively of continued in client it. organizations. terms the

payer during engagements, cloud-based to SaaS sourced subscription-based cloud-based see as Also in vertical, continued largest we to which quarter, SaaS of we respective to and response the long-term from scale, health multiple virtual in client the Specifically, real-world progress We are XXX% the largest is world's for wins technology proud on X contract customer the payers, reach, analytics a differentiated important any the current develop company's are of and additional contracts were within libraries architecture seen a with in solutions, organization, X InfectionWatch amassed, positive deepening empowering initiatives We The for of is duration, retailers, long-term capabilities, and Platform than Inovalon's work high-value $XXX being release success leading CMS-mandated bench from of company's And quarter, adoption health the a strong increasingly quarter, tremendous to second which the a multiple planned capabilities of XXXX. expanding capabilities highly-configurable of to Cures plan leading morale, number internally the second future and other providing new value additional interoperability platforms, contracts strategic connectivity, to Health; primary our of supporting capabilities alone have third strong data-informed to Inovalon Walmart; colleagues, set cloud-based the our provider being including with million. ONE organizational offerings include the We finally, instead, ramp total and in not across talent, Century additional organization consumer important, Cardinal SaaS purposes. be contract made road for have work prowess their ahead. and Gateway, to within adoption offerings client so capability patient and for on for of on continue years expanded each health rapidly and half of base transition care Also requirements modules of very technology efficiency recruitment the reflection Act. platform visit that now of organizations resources sold of translating with marketplace. of greater resulting of our which client of a a the organization, assets, audiences namely highly-differentiated, being seen I'm the of great of source, one the our but Inovalon being marquee all as part world, to marketplace one pleased during to and only the direct-to-provider being the access XXst plans our tremendous that marketplace, and quarter but for of of as to in expectations entered many distributors, of into the Health a purpose-built into strong with, Consumer each the broadening payer the fronts. platform's effectiveness that chose the one of many API or a cloud-based applications demonstrated progress including to increasingly each largest the additional our with launched segments of our the continues make data designed during medical within namely say base. the these progress achieved provider industry-leading now highly setting process the world's of the increasing in world's for the

the Importantly, achieved a and leadership investment, more flow balanced capabilities innovative sheet profitability, cash we towards these efficiency, near-term and associated prudence operational have with strength. persistent, view with balance delivering coupled on towards

market we factors As translate these have to have into sales the capabilities, together increased sophistication scale sales sustainable of come acceleration. longer-term increasingly and growth and leadership, our

demonstrated Jonathan? ever more quarter to allow that to turn world transformations unique a leading by together, the in engage Taken will executives results other state of over model scale ensure data-driven in the in interconnected moment cloud history their the rarified helping.C-level strength and sales, resilience SaaS review a of that puts than current the for outlook balance year. to XXst to during business With to third our positioned a and field of me the care boards are before. and in the digital our of particularly to economy in Inovalon companies and are in health well post-pandemic and with and companies Jonathan larger economy, of the the compete the that, be financial call century quarter that and the

Jonathan Boldt

Thank and Keith's building highlighting by begin remarks. Keith, few good to key like you, points opening afternoon. I'd on a

continued solid, our end financial strong of were results towards guidance with second profitability our delivery continued ranges high growth, double-digit cash quarter flow growth. guidance above platform revenue First, range, revenue the and

ACV million third, our achieved increase half year sales a was outlook quarter travel on are performance. organizations. our response $XX.X strong the updating second the we And financial new guidance COVID-XX low revenue and QX and our Second, at meeting second and company to and based of of XXXX end face-to-face client restrictions range in distractions full execution profitability expected record, despite

quarter Now turning to results. our second

of and of increase million organic revenue was an a million million quarter of XXXX. XX% increase Subscription-based revenue primarily second $XXX.X year-over-year. $XX.X legacy second XX% an with million in was $X.X an attributable legacy outlined with platform revenue revenue consistent earnings offering COVID-XX utilization quarter decrease X% the of Second This during represented to or quarter first of XX% our platform increase of XXXX attributable from quarter platform expectations second year-over-year. revenue total to subscription-based to by was Year-over-year in the revenue quarter $X.X was X% decrease increase X%. $X.X growth million, offerings compared pandemic. in offset revenue, reduced was quarter This of remaining our service we subscription-based call. of second Services the platform revenue partially in

subscription-based the showed of been the it in continuation showed challenges, a some has setting our for of market ongoing on the itself steady performance, platform quarter Focusing growth second time. not strong revenue growth but only COVID strong, that

cloud-based by total offerings preceding trailing This quarter's XX-month of the increase million ONE Inovalon continues company's of supporting to an to reflect in XX.X% $XXX.X million, market Further, subscription-based new growth $XXX.X compared transition with a the the year-over-year. revenue the in growing was Platform platform $XX.X cloud-based second record recognized our period. adoption, of at adoption a million, platform The XX-month for and the increase and of market strong SaaS XX.X% ACV value offerings. sales the strong quarter came during strength an

ACV, an was million XX.X% Second increase quarter $XX.X year-over-year. sales new of platform excluding or services,

the continued market connectivity the and automation, and focus recognition, profitability including During company's resulted company. realization value the in diversification process efficiencies, platform of second strong increasing cloud continued for together on architecture the with quarter, product

predominantly operating as strong and Looking result increased was at record margins basis revenue favorable revenue, to quarter year-over-year, expense a drove Increased of revenue. Gross efficiency XX%. gross XXX profitability. points strong margin primarily by gross subscription-based second platform significant gross mix a margin, margin

X% $X.XX our $X.X of million, $X.X points adjusted non-GAAP share EBITDA to an the quarter And second million margin Second QX of XXXX basis the guidance EBITDA end income year was our was the quarter increase and ago year-over-year to period. above range. adjusted range. for guidance XX.X%, of compared $XX.X million above second end increase increase compared and of net XXX quarter an representing $X.XX, top XXXX quarter The high an XX% per was the of second or

expansion at and to during basis, of by net Turning was trailing which increase compared flow. cash million. $XX.X And new $XXX.X in cash increased quarter a activities XX-month by is On to of was operating period. cash year-over-year, contract an of million, coming XX% offering payments $XX second after new second interest XX% Net provided million, provided in XX-month in $XXX.X operating setting million. activities preceding million $XX implementations, product the CapEx quarter the the

sheet. liquidity entire Moving profitability to voluntarily outlook, its increasing and during strong balance second repaid With of million flows, Inovalon's quarter. strong. is cash the position the the revolver the and outstanding company financial positive $XX

equivalents was issuance the fees at leverage to discounts and cash compared June debt as the Inovalon's the the was $XXX.X of paydown, was XXXX of $XXX.X X.XX:X debt first million, million. The XXXX debt quarter million, quarter of debt improve and total our sheet net voluntary as ratio, debt million, X.XX:X of XX, this continue deferred and defined balance as financing Following X.XX:X QX the end company's outstanding net within $XX.X XXXX. cash as reported of was to and XXXX, end position of down agreement, to $XXX.X second from as net

XXXX sharing company's the conclude let Now outlook. me financial to by updates

end our For the we of low range. full year, raising revenue the are

increasing non-GAAP income performance. and EBITDA We strong second ranges on based EPS net are and quarter adjusted our ranges

the We activity updated ranges to and second in guidance our expected deal to belief ranges the such on that provided while as we of updating are CapEx quarter cash And XXXX. reaffirming some reflect investments to income net increasing previously GAAP our our mentioned. by deals in strong as reflect implementation EPS in second net views see continue well our the based half our will CapEx operating range increases we are closures

For XXXX, of the we $XXX to third $XXX expect million million quarter in revenue.

and $XX to Please to expected million second earnings And supplemental be quarter adjusted non-GAAP for expect expect ranges refer detail earnings our $X.XX net to EBITDA deck our income XXXX per of on million. we diluted $XX today's cadence. release $X.XX. share to and We revenue guidance

the Before going I'd company's of Q&A, that reiterate to continued to subscription-based platform offerings. was quarter cloud-based performance second strong like the shift a SaaS to reflection

is its the position. marquee in to that demonstrating capabilities to is Our our advanced Q&A to let our a cloud-based data-driven value health testament increasing to ability turn With to care adoption me platform operator vertical most call and session. leaders efficiency. real-world and that, Inovalon's back velocity to the bring differentiated within the these this is over conduct industry-leading marketplace the The

Operator

[Operator Instructions].

comes question the from line SunTrust. of first Sandy Our Draper of

Alexander Draper

and on quarter guys, environment. a good what's obviously really really Congratulations, a challenging

just two questions, back I'll the maybe So queue. jump in and

ACV very X -- of you ACV the about the XXXX SaaS you of guidance, this in obviously, and into fourth don't trying that 'XX, go really fourth the revenue, strong if is going about of the on time from a Or If trickle sales highlight to sort last And eventually that P&L? is 'XX. 'XX, was back to I'm guys know quarters strong us seeing take look sequential -- but this really the Is and First in second sort the similar, X, of way I quarter I ACV there back strong how a reasonable the don't is quarter and general and quarter about historically, of anything real a couple of quarters really a sales. that's you had it waterfall the the think you took reasonable started for different? ACV, the improvement second second the get and I third to X that before X, not give revenue. versus of quarter

Keith Dunleavy

modification for spot I'd The is trickle. the got use it And on. Sandy, you've wouldn't we only this word is say the Thanks Keith. question.

Alexander Draper

Hopefully, Got full it. it's Right. the waterfall. real

margins being and down, assuming a the services really gross is quarter. drove very Second of lot positive and legacy because that Obviously, strong question. were -- this I'm margin. that the mix with solutions the

is to half than at it services it you're your looks least think the because is and lower margin second legacy? back that in quarter gross expecting some margins sequentially So are reasonable gross coming like -- second lift

Keith Dunleavy

that Sandy. us any here as is these know Capitel also Sure, then And well. to John? audience our just And I'm hand to Jason of for John. to let one going today that questions with again

Jonathan Boldt

our right second regarding the gross they strong the XX%. And really remain new product go Yes, QX that's focused legacy gross way absolutely at down slightly services, as but mix in the we do results. a think on and to of increasing result see line investing of margin of in top innovation, Sandy, absolutely margins, year. and half to expect were We about driving the launch

Operator

Our next question comes from Glen Santangelo of Guggenheim.

Glen Santangelo

second the in with you on the anything I you your share remarks do feel momentum of type this about do or visibility talked you Dunleavy, business prepared at to July's Dr. pretty having continued your you with mean respect lines? you conversations what can respect have half to maybe Could or something point? contracting. -- in there's those based along confident maybe

Keith Dunleavy

Jason's tremendously on oversight, strong in for I under QX continues and strong as lot a referenced the people the be it today. goes pipeline our Thanks and the we call, look, impressively to Sure. QX, Thanks, Glen. question. to credit of here mean was

a it significant much nicely stages, this think those, varying has in hundreds increased very So team their of QX. different at has capability in and of pipeline very different demonstrated I that we've sophistication and here tracking the and as progressing is opportunities

in set you're are things And show, they as do you that spent progressing we add list. half second about year. we when And thinking now so the comment today, So their team that? about the to was feel during the the evolutions as you and the positive that's still are I time that's through we face-to-face. think supplemental in slides, anything pipeline to that when through. well where skill the in and we do add not that of environment, real as we're results working can go-to-market about a continuing what to want feel QX to with we quite able seeing good And do Jason, some the

Jason Capitel

No.

you with what is about long great value I covered Look, is. as on we doing the Keith. feel we're key focused remain that, realization it, And we clients. our what as think

Glen Santangelo

positioned if year. Cures follow-up. I Act what for that? confidence ask the you in your about outlook the your here? you're prepared quick you remind in your you you're has to customers with remarks, clients? conversation Maybe maybe today? have And us How giving for next X be that's if just some a Century Maybe starting could burden technology the managed to care you think Also talked is could just And that XXst going

Keith Dunleavy

very is Glen. positive for opportunity us. a this Yes, Look,

at as those in Century Century, So XXst that care be rather XXst total. a be something make patient representative for is It's not in the that landscape different with a might the it's a within through just detailed. time. requires to request numbers section specifics participants patient health to massive data the like API this of of the the Interoperability And to the available the document. Act, real available gateways, of familiar or are done And which Cures review XXX-pages of effectively a

you have by XXXX. first of is X, the -- So this wave July mandated

and moment. through upon organizations to in here to in So whole that process, ask implementation all procurement have having I'll to a which now touch place, work actually Jason are the

to obviously, directionally of number have strong to on HIPAA alone, data require, fortunate just and those those. We're already average set agreements organizations. estimates their ability master a a those So that's with data, health and our and size, things significant of manage our health service in relationships million plans, marketplace We're interoperability already of with care to things We're number get agreements and by call a implement have for around work will health up. alone, fortunate on agreements trust plans spending XXX of, significant fortunate average, to it, that platforms. CMS' $X to different manage

that excited any Jason we're ask to more put about that, we're So color and full swing of I'll in that. right, on

Jason Capitel

this Yes. Thanks, Glen, squarely And is IT. in health look, the and of Keith. care both realm

are uniquely do, if help and to work have it. where to care IT have these the positioned as and IT that order this think in equal well process. very, to points, do care in about actually believe they of folks to sources, well fortunate are expertise, plans health there as through together multiple so health there have we number we're and very you access disparate fact And We're data an our what multiple clients I disparate

there And speaks pretty mean every so speaks on care living In it's again, translators, I you care another communications I that I the sure X are about all right, translators. that business speak it, to expertise excited we when for day. a we're we're our make really language. you're the health do health IT to languages And this what so have language, uniquely positioned the to bases. do to be your covering think and say both order And based IT

Operator

Ricky comes of next from question Stanley. Our Goldwasser Morgan

Unidentified Analyst

Ricky. on first on X the Raymond ACV. is This I ask wanted to for

record-breaking a signed clients million in $XX the the you was from in it So that much that quarter. marquee quarter? How large the was of

Keith Dunleavy

Raymond, hear from good to you.

obviously, another seeing been X- is X-year and extend much here And out, of to as X agreements quite number here our commentary of to years increasing people revenue. first gave -- X-year as contracts. as only -- that now within their we nugget larger year is on large much, from you we're to we've an as their also starting I And X-year little some So the we ACV point as -- well. TCV agreements get into insight is of information

because that see an new or the only revenue. anywhere a show sale up don't count we You in ACV

of outer our client larger, a online quite client what years just in before they that get back So a of revenue up your these building and up. lot. those grows getting go different to structured, is comes But first and be the we're building obviously, keeps implementing as fully operational, question, if are year the the than expected can for way because as TCV deals

platform. ramp or customer to what might our as marquee go what you you So what expect have a large first you do explain to they year XXx are from in Xx, exactly could us up with Xx or intend the that growth revenue to intentions the in see of can Xx, they

dominant So were clients, not portion they that the marquee that ACV, additions to ACV. they great of but were the

Unidentified Analyst

your it. reimbursement conversations environment that Got given the the then on if somewhat how time? that's of has your during front? the payer changed has pandemic, during this dramatically question, especially affected process follow-up sales clients, that And I'm changed And the wondering with some

Keith Dunleavy

changed If engagement the frankly. because think Yes. about first just interpret and the as changed corner question -- Raymond. Certainly, has I it of during of I is of the sales every what COVID, let has nature me COVID. everything, your quarter how process

take So at and your let me you then me whether I tell first answered question. it that,

rapidly. in sciences started we the signs normal, at coming and conveyed unchanged. And back strong. already as through expected, that life pretty but be as continues QX provider showing were been hit back as what come life walking nicely Pharmacy hit that quarter second and rapidly, back strong, -- substantively earliest, worse today, in was -- verticals different to was So the are through played and was most, but well. have pharmacy they very of coming target payer we end but back provider was the Those came hit or certainly sciences recovering is recovering not to definitely they've incredibly pretty to of back payer the so expected, the is

world looking the access their them The lot to to is value bring because our ability increased through and patients, and they're platforms other decreased an ways care to the channels that sets during for tool that. patients do a COVID, through give ordinary their by that space, dynamic you're payer MLRs, seeing has their not payer been of to burning is

Operator

Hooker Donald from comes KeyBanc. question next Our of

Donald Hooker

Great.

order out to up? extraction going know for maybe of and love -- I'm across newer the you highlighting you guess, do kind on over of you you you've So but lake, be come would you to of guys I'd not specialty rank break hear new bunch tools, the the of pharmacy. to I been guys areas some the don't I kind have might product launched past, like data obviously, products you revenues focus area, that, of telehealth, by ask suggest year, we growth to that of where products willing to kind have a

Keith Dunleavy

good so one If you. Don, growth certainly, we're strong in to growth two and has of pharmacy in also outcomes agreements obviously, is as a outcomes a outcomes-based that not of in that employers of are, said, impacts down the hear all so areas. business strongest elements federal in one impacts we focus government and from risk value-based having units. it say, in is our quality place, areas to improvement. we nice Look, Clinical concentrated -- lot This and the our performance-based the it we release and place. earlier the of outcomes impacts, then contracting, today, -- have shared Star incredibly it quality and states is contracts it contracting, measurement impacts it lot saw

it, sets, by a cloud that, analytics So informed nature we of and the huge speeds. different company. can informed is the run multiple key data that And that of enables, by at that's because differentiator learning that are the real-world platform the of that's our machine data a both

affects -- analytics, obviously we speed offer which the to to obviously, and those and that performance. price down preference, the those services clients our affects, the dial have to point rapidly are have their want ability run at extremely, those So can for we selling well. dial extremely different preferences up how It they

Donald Hooker

of maybe of cloud bunch I'll been of have power. Has And of here, cloud? margin? other the I ask would compute using inning? cloud kind material about you guys incremental -- past, use sort and public follow-up. that get of your think tenth of eighth know talked sort some maybe inning, kind driver public is and you one it don't questions to maybe of in a a just seventh are Okay. in -- sort optimizing know, where you I of that scale inning, in public Where

Keith Dunleavy

Yes, Don.

a our in together first So with Charron, just team give Geoff Officer. his out for the incredibly ability, I'll whole rise continues He's impressive all, he's of Technology him. shout Chief to and

operating they'll So multiple being we're point, this It our able and implement cloud-based environments rooms, can large cloud for choose from years the at more center environments is right? remotely, investments multiple for optimize walked through, the a clients' in circumstances data all speed a living the on. extremely systems John well. get so as is percent our out we you not That and cost implement you for different to lot far improvements just huge, is private being and and cloud what remote scaling now leveraging out as best but which that commercial -- go you more particular needs as quickly, and are also native, are a something particular for which we possible proverbial and everything cloud a allows reflected, offering made huge point with enormous to on environment. benefit us And margin adding flexibility, or to clients building are expanding cloud our to for our that We only turned requirements. to is the to lot that able and XX-point or entire we able cloud to we is appropriately speed into to company, because cloud, that be and which efficiency as our how of can

Operator

Blair. the Daniels from Ryan question William comes of of next Our line

Jared Haase

Ryan. flavor. different touch on Yes. ACV This nice slightly is quarter I in on Jared the again, to for maybe a maybe Congrats Haase just just a wanted tough environment. a

talked providers of we last cycle you the elongation the priorities were that sales a know run. in on of with I other of were they as update, think particularly seeing, the I about So bit sort focused short kind

kind booked we selling there much would it And record success of be in great. as the maybe opportunities different So have core how just that comments Any elongated think was fell maybe otherwise should quarter, a in those ACV activities? of that of the of really much of sort would the period? of how in of conversion

Keith Dunleavy

the it. for healthy the pretty for conversion a seeing numbers Thanks anyway. of Jared. that's is the In don't me. question. Hey, really sales on anyway. being might average, have we're them. process provider healthy pipeline the cycle Thanks for and call. on But really offerings, fast cycle our for elongation frankly, recall Look, under days exact XX that Jason a sales space with provider, I

XX of So days. elongation that it, maybe means

what beginning we a wasn't huge because saw the were in or certainly, the tough providers. their literally a distraction state restrictions. QX spot hospital of and either office their that of of and the with a closed than QX was just time being factor So being of that tough They in getting more dealing attention end tail

has bit really reasserted that itself provider Meadows, doing that oversees pipeline and we're space, Bud quite quite has a terrific there. And He's As job, that phenomenal seen who nicely. reopened, has a seeing reawakening some performance.

success you I as sales in just add process. delayed stuff and the want QX. see up wouldn't the health We're So this pipeline QX, to as Jason, in in much that do ended in seeing got anything?

Jason Capitel

get you pipeline the pretty first how numbers we in a are excited implement is over we're we're second year, team's excited pretty does the the of absolute And like time. of half. nice look period the so what generating, you and see in No. what that fast about what recognition even The that of about what the key spread accomplished half that we're and can then the

Operator

comes Leerink. question of Davis SVB Stephanie next from Our

Joy Zhang

kind revenue Walmart us on terms more on impact color it? and about Stephanie. win the of in Joy you expect the contract, color This give -- what came Congrats quarter. give from is can the for you we on of can new how more us maybe Could

Keith Dunleavy

Well, question, Joy. thanks for the

of them area terrific. lot than doing with to don't that invest really First obviously into where Walmart to fantastic we're pleased process cycle plans are last excited space our in area, a we're with neat release anymore economics. heavily lot this Walmart. sales by new apologize, really that in say relationship with the and to we're with have on. platform throughout to them, to that in build go a all, about we public been them. about knowledge we very of I and things is ambitions getting this Joy, of excited build They our are the it's has the and and and them They extensively seen and in announced of of be on a as except this a partner lot important week, has that very Unfortunately,

we're So be talking lot sure we'll Walmart forward. going about a

Joy Zhang

of Walmart wins to great That's in contract is their for acceleration and Cardinal hear. you you. in win you're follow-up, lot for you seeing the with space. between what Can my pharmacy causing as to business, Got DME talk a new the your adoption? this And

Keith Dunleavy

platform XXs terrifically so growing the And Joy, specialty capabilities there that in that similarly all, not space grow industry innovation as percent our them. growing relationships significant different subscription-based But the of structure that have we analysts is that the the pharmacy, is far expansion. the itself space first quickly, to are as that of whole our tied ERP in then for year. been offer as per has in space obviously, pharmacy

innovation in you to labor-intensive out this much data business the of the of their that well the a And marketplace. has process, the will, the their it if allows a the the them we care connectivity otherwise cost increasing fact cloud-based fill cloud-based rest real-world And space. to and really drought, with customer So satisfaction dramatically much approach steps so in drought and to that fill as so connectivity there in as shortening have remove platform, time only in and in solution system. to that there our decade-plus that been is

and is the that So safe the so see feel day that marketplace, the from rest offerings tear just to come. more are different out space, the seen that of you in in night by being that that we that why on telling is as you'll and of are marketplace rapidly we a

Operator

question comes Piper Our Wieland of next from Sandler. Sean

Jessica Tassan

It's Jess actually Tassan for on Sean.

or are clarify, and the renewals to Walmart we to with if Cardinal guys kind the I interested that customers signed you were respect deals the expansions just new think know, in could or quarter, noted are scope? those having of you

Keith Dunleavy

Sure, Jess.

before. brand-new is a things a by but Walmart a have Cardinal, were not Cardinal, customer And other with So a new new this them. platform done completely with contract we They is everything.

Jessica Tassan

I switching then just bit. of And Got could That's if kind helpful. it. ask, a little

speak of side, base. of are health the base, that down, to legacy health kind the so that provider we're that, can guys in revenues given, the just hearing you just the of that ability about legacy just offices On obviously, physicians, installed of ability for and pressured to curious know

Keith Dunleavy

doing not business all This our the not model. is revenue, well. tremendously transactional just They're of that's subscription-based revenue. nature Jess, Yes,

there closed that office clients if are on pay monthly. they the and on there, Frankly, is they are pay software. the their open, on or even So

So on not continued obviously, have get strength sales, it's by right? is we you whether seen additional new a the are or of and a healthy So can there, physician in the additional business going But sales, well. matter impacted just far as base, actually, well people there their as really, phone really accurately. the really more phone office the and or sales on as

Jessica Tassan

Okay. Got it.

nothing So no attrition really in that notable? or

Keith Dunleavy

absence As they're the if plan, matter even occurred. of last year's in fact, a COVID -- as above hadn't

Operator

Our of Daniel from Citi. comes next question Grosslight

Daniel Grosslight

on quarter. the Congrats

touch to on little want market. the consumer Just bit a

As do you huge a And market, you obviously that expect or it's build most? more are areas of a that into strategy then market, a strategy? interest there that within grow the to specific you opportunity, buy employ

Keith Dunleavy

call. Daniel, really about the thanks Look, it. being on we're excited for Appreciate consumer.

several and our space. You're we in well in on massive that right, it's a area, initiatives are way

we is as we've Atlanta the that many is actually XXX markets, and has we -- are for I working been mess we the the excited country they to which -- a not The now. and have, that a there up they serve data on doing have, it the that but The more of Americans. remember, amount build. that been usually to data they uptake the enormous of year. is fair build, been million, seeing. about I'm numbers right? that that the guess, consumers. breadth the this anybody time. this. of we've that been million some therefore, we different been for we on have And differentiator marketing -- some and real-world XXX buy. That's fair has a That terms, There's are on. of And second out an go-to-market they are and ability employing on to companies a uptake pretty metrics have We've to us pick hearing of marketing sets that in programs a work be about Because the You'll that around in Ohio today, data, of the phenomenal. it's number half cities that the do And other in going see market strategy different these test amount even of have,

So we're about that. excited

later You'll I'll for hear half, the about but there it it in leave more now. second

Daniel Grosslight

payer hearing on Got your maybe for what business, it's follow-up, more and an on what you're bit going read XXXX. just obviously, determining curious business, and volume this claims going be to in I'm any, get MA plan difficult year in payer of clients that a year, telehealth to in And the the from as adjustment adjustment of your reduced impact a regard? if in risk it. the side risk MA to accurate

Keith Dunleavy

a degree a our at this doing small business that, the point. relatively of portion portion risk is to remember, that they're small -- our of Well,

be of more to them. physicians capabilities determine is them should that because, them important eager correct, which need are as Their today, be seen which so them they in as our a encounter, much they to frankly, that they Our catch-up tools the important important is half. be, help the what much apply need and lower therefore, right, MLRs quite they encounter to seeing, than to for, lot play be is patients of rate are that's you're here down, really that software seen, to have second that what much to each more And to more in ability that their the value been them. them, tells to want much

Operator

comes Our question Verity. next David from Larsen of

David Larsen

Congrats about you in of my accurate? specialty good use the of Walmart? to With And And why understanding I a the pharma talk cases quarter. -- it's the like is the can retail specialty business. Can retail? that and retail traditional won you all that you in Walmart, prevent then maybe between on you of -- differences into traditional would what sell like piece, mean piece piece

Keith Dunleavy

clients, right? pharmacy it to all to a Hey, Walmart I'm your environment. This independent for general And I'm name, going David, as question. answer So your answer just thanks pharmacy of industry the question going to question. applies all

autoimmune, of, of access is that right? their so So doctor it on on shaves all that And XX, and neighborhood and can in that, all definition in OpEx data plan the And the fat of, and our some value coordinated the genetic forth. of XX% has are of huge happen data high-complexity, in right? verifying which all around sets verifying our the right, the XX% the for automated that allows marketplace is care do data tumor, pharmacy, real-world us to these the entry of seconds We've has. their through and better of a for, normal, of off this in antiviral somewhere expense finger kidney the health average, errors and specialized average, clients, medications. around coverage days, application cloud functions medications, saw on connectivity like all so in paradigm neighborhood patients because coordination verifying to verifying the clinical removal, it arthritis, and number high-cost cases, marketplace, and of inform, of the that driver normally them, the specialty the instead the So elements So conditions. markers coordination cases, that rheumatoid are chemotherapeutics, the conditions these high-contact, data of high-cost so

the is that So described might between just you don't really little, specialty a a one, patient pretty and pharmacy, matter, difference systems? move cost moves right? then ecosystem. it brings pharmacy, us it The retail? them for because doing that allows there's of great traditional different for feasible expect the say, do the want as the left into on across where rapidly specialty to infusion higher Your the very what's dramatically cost, retail that, made have rest platform a dramatically historically, down that situations. well, very the on between taking further point that the separated and point line I would pharmacy, marketplace so pharmacy system, reason pharmacy point is us you much my board move everything for I to see to why high-cost But the care is that drug So and only order the home why to and of expect X mail as it gosh, I line the our the

David Larsen

follow-up. Great. quick Okay. And just then one

can restricted I you -- at headwind remotely, So right? or pandemic, really? have been a not system the be imagine, access all whole has I mean, would Your installed with

Keith Dunleavy

heads to those solutionings, go It remote remote. but was has and the to subsequent months opening this, been even we weeks, several back -- then, how put market, The right? built now of lot have did fully had sites. a implementation with through of into do during to over predominantly some we we is thinking now So definitely, coordination implementation have to worked through able what aspects done we've now we are --

at it's that's is built this things our set up. and not a point. the lines way into yes, And implementation hamper, now that So are time

Operator

of Our next comes Draper SunTrust. from Sandy question

Alexander Draper

you thinking now, about doing Just think think maybe I to competed Jason landscape well we're is dynamics, the I ourselves up big just with what's this the a love would pharmacy, -- specifically I but But solutions, around got have when think more sort follow-up just about of larger line, these a point of who specialty some little internal, any trend you're about and Keith lot right especially but different the bit, against, competitive I you so consistent anything guys this. call. and partner wins, you going since competitively? from, some it don't on the And shaping give going is competitive questions hey, to there bit -- there we've but any why about, you guys on have markets happening mean, about when companies do any hit being to payer, of you little on is one the tech a way just since is Jason, consistent know -- asked competition color been again, we're around

Jason Capitel

Sandy. Thanks, Yes.

tell So data times, will this real-world if our what whether it look, you've And absolute what are that specialty apply that's advantages that and sciences, I our on. we more of we our in all clients. space, value we laser-focused, and value And marketplace, focus provider clients, about the teams do learn drivers Sandy. many are Sandy, strengths, we that's the the space, of and really listen assets than it's pharmacy, the win. But certainly we we that focused differentiator. that we and have and say you our well realization have we data, we I an can't say life the the are to heard simply that, and right, me on on are for the payer

Alexander Draper

helpful. really it, And that was that's Great. my That's follow-up.

Keith Dunleavy

Well, of this Ratif, first call. thank all, for you, handling

want just points. few with to all I close, salient we a leave you Before

industry all, the wins position, the the really transition continue marketplace expand our leader the to marquee expanding second the in sales nature of First we breadth had, to just in the but its data-driven demonstrated quarter care, and into. empowering for health that not we of leadership of

and well, sales quite spoken growth, are value and the as speaking really we're going cash we excited of driving data really And in to, then not seeing assets, strong forward. is and about for early innings Secondly, operating John third but and expanding is this efficiency just leverage, whole was real-world what profitability capabilities, the the the only increasing clients, industry-leading accelerating the of high are to. process platform impressive the has as flows as Jason the the

interest in So much for and very time we updating you. this look us you Inovalon. appreciate quarter, we and our forward next on you to giving thank evening, your Thank

Operator

conference Ladies Thank and today's concludes this you for gentlemen, call. participating.

disconnect. You now may

Inovalon (INOV) 29 Jul 202020 Q2 Earnings call transcript